Final Thoughts
March 26, 2021
Final Thoughts
Written by Tim Triplett
In the famous words of Isaac Newton, “what goes up must come down.” While he was not referring to steel prices per se, the sentiment still holds true. Steel tags can’t stay at record highs indefinitely. Supply will eventually catch up with demand. What happens then? Will prices see a sharp correction or a gradual decline?
To appreciate the gravity of the situation facing steel buyers, consider the record height of steel prices, and thus their potential for a record fall. As Steel Market Update reported this week, the benchmark price for hot rolled steel has topped $1,400 per ton—more than double the historical average and at the highest point on record even accounting for inflation. If steel prices were to suddenly revert to the mean, that would mean disaster for anyone with inventory.
